THG Shares Fall 7% Despite Doubled EBITDA in H1 2026

THG PLC shares fell 6.85% to $29.53, trading near the bottom of their 52-week range despite the company reporting stronger first-half 2026 results featuring a 7.2% revenue increase and more than doubled adjusted EBITDA.

“We have fundamentally reshaped the group while continuing to grow the top line and invest behind our strongest opportunities. Today, THG is a much simpler business,” said Matt Moulding, Chief Executive, THG PLC, during the earnings call.

Revenue Growth and EBITDA Performance

For the first half of 2026, THG reported total revenue of GBP 828.7 million, representing a 7.2% increase compared to the same period in the prior year. Alongside top-line growth, profitability metrics showed expansion as operational restructuring took effect.

Adjusted EBITDA more than doubled, reaching GBP 42.8 million for H1 2026 compared to prior results. This earnings expansion reflects margin improvements across the group's operating divisions following corporate simplification efforts.

Full-Year Guidance and Free Cash Flow Outlook

For the remainder of the fiscal year, management outlined expectations for positive free cash flow. The company projected full-year free cash flow to land between GBP 25 million and GBP 35 million.

What Is at Stake for Investors

The negative share price reaction despite accelerated profitability highlights investor scrutiny regarding valuation and growth sustainability in retail and digital commerce sectors. While operational metrics such as the 7.2% revenue increase and doubled EBITDA point to internal progress, market participants continue weighing macroeconomic headwinds against corporate turnaround strategies.